MUSCATINE, Iowa (April 18)—With help from an improving North American trucking industry, Bandag Inc. reported a 48.3-percent growth in net earnings and 7.5-percent growth in sales for the first quarter.
Despite the gains, Martin Carver, chairman and CEO of Bandag, said continued increases in raw material and transportation costs will be a concern throughout the year.
The firm's net earnings jumped to $5.96 million while sales improved to $186.6 million.
Bandag said net sales were affected positively by a sales increase of $10.8 million by its Speedco truck lube subsidiary, in which it purchased controlling interest last year. Also helping were a 5-percent boost in North America business unit volume coupled with a 7.2-percent hike in Speedco's net sales and an increase of 6 percent in international business unit volume with a net sales improvement of 29 percent.
Factors negatively impacting overall sales included an $8.3 million decline in sales from divested locations of Bandag's Tire Distribution Systems Inc. subsidiary and a 17-percent decrease in European business unit volume as well as a 9-percent fall in sales in the TDS unit.